The euro has fallen below the $1.30 barrier against the dollar, as Sunday's European election hangover continues to unsettle investors.
Société Générale strategist Albert Edwards has warned investors who own Australian government debt they face the 'mother of all hard landings' if China's economy slows down as they expect.
Australia is offering better opportunities than Asia for income investors, according to Jason Pidcock, manager of the £1.8bn Newton Asian Income fund.
Mining stocks slumped in afternoon trading as Rio Tinto said it has seen slowing demand from China, its best customer, while Australia implemented a controversial mining tax.